The London Stock Exchange uses cookies to improve its website. The cookies for analytical purposes have already been set. For more details and how to manage cookies, please see our privacy and cookies policy.

Alliance News Detail


SimiGon Expects 2016 Results Will Miss Market Expectations On Delays

[ 16 Feb 2017 09:02 ]

LONDON (Alliance News) - SimiGon Ltd on Thursday said it once again expects its annual revenue to decline year-on-year, citing contract delays and additional client demands.

Shares in SimiGon were down 11% at 17.97 pence on Thursday morning.

The simulation training products company said in preparing its final results for 2016, it has concluded it must recognise certain costs of meeting additional clients demands outside the scope of its USD6.7 million contract, first signed in 2013.

Alongside this it has "not yet received" the necessary client confirmations to meet program revenue expectations, and has been "disappointed" with procedural delays in concluding its contract with the Israeli Air Force, meaning it has not recognised any related revenue to the deal in 2016.

As such, SimiGon expects to report annual results below market expectations, with revenue of around USD6.0 million and adjusted net pretax profit of at least USD300,000. A year earlier, revenue came in at USD6.9 million and pretax profit was USD1.6 million.

However, the group said it remains "optimistic" over its outlook, and said revenue and profit which was not recognised in the period should be incremental to expectations for 2017 and 2018.

SimiGon's balance sheet remains strong, it said, with more than USD8.0 million of liquid cash, and the group said it is planning a share buy-back program later in 2017.

"It is disappointing that our financial performance for this year has been affected by circumstances that are outside of our control but we are confident that all of the outstanding issues will be resolved in the coming year," said President and CEO Ami Vizer.

By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland

Copyright 2017 Alliance News Limited. All Rights Reserved.


SimiGon Expects 2016 Results Will Miss Market Expectations On Delays - Alliance News

The Exchange accepts no responsibility for the content of the website you are now accessing or for any reliance placed by you or any person on the information contained on it.

By allowing this link the Exchange does not intend in any country, directly or indirectly, to solicit business or offer any securities to any person.

You will be redirected in five seconds.

You are accessing the London Stock Exchange Annual Report Service powered by PrecisionIR.

The Exchange accepts no responsibility for the content of the reports you are now accessing or for any reliance placed by you or any person on the information contained therein.

By allowing this link the Exchange does not intend in any country, directly or indirectly, to solicit business or offer any securities to any person.

You will be redirected in five seconds